Bankruptcy Before or After House Foreclosure?

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Bankruptcy Before House Foreclosure? When deciding whether to file for bankruptcy before or after a house foreclosure, always choose before. If nothing else, filing for bankruptcy before a house foreclosure, especially with the proper use of Chapter 13, can help retain control over the home for a longer period of time, thus reducing the stress and anxiety of being displaced and Chapter 13 might even derail the house foreclosure altogether, get rid of liens and keep you in the home!  Prevent Future Debt and Block the IRS. Besides prolonging the amount of time someone can live in a home, declaring bankruptcy before a home goes into foreclosure may prevent a mortgage lender from being granted deficiency judgment. Also, the Mortgage Debt Relief Act of 2007 says that when someone files for bankruptcy, the government is not allowed to charge taxes on forgiven deficiencies. This may apply to other debt like second mortgages as well. Hard decisions? At times we all face hard decisions. For many, the economy has been a challenge and the cause of hard financial decisions.  If you’re facing difficult financial decisions, good, trusted advice is precious. For anyone facing debt and foreclosure, take heart because it often isn’t as bad as it seems and a good advisor can make it better and we want to be here for you with both our brain and our heart. Lloyd Cohen, Attorney at Cohen Law Offices www.LloydCohen.Com serves Ohio counties of Franklin, Union, Delaware, Licking, Muskingum, Fairfield, Pickaway, Fayette and Madison; plus cities of Columbus, Marysville, Delaware, Newark, Zanesville, Lancaster, Circleville, London, Washington CH, and Grove City.

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